Fino Payments Bank Posts Q1 FY27 Results: Customer Acquisition and Referral Loans Drive Operational Strength

Fino Payments Bank Posts Q1 FY27 Results: Customer Acquisition and Referral Loans Drive Operational Strength​

Fino Payments Bank Limited reported its financial and operational outcomes for the first quarter of Fiscal Year 2027 (Q1 FY'27). The Bank maintained a focus on refining its revenue mix, achieving the highest quarterly net revenue margin at 42.8%, despite moderated revenue and profit following the recalibration of its B2B UPI P2M business.

The Bank continues to pursue a differentiated, asset-light, and fee-based operational model, bolstered by its secured lending portfolio, strong liability base, merchant network, and technology platform.

Q1 FY'27 Financial and Operational Highlights​

Total revenue declined by 32% year-on-year (YoY) to ₹ 306.9 crore in Q1 FY'27. Net revenue stood at ₹ 131.2 crore, marking a decline of 14% YoY and 4% Quarter-on-Quarter (QoQ). This reduction in revenue and profitability is attributed primarily to the strategic recalibration within the Digital Payments Services B2B UPI P2M vertical and cash-driven transaction business segments.

Margins saw significant expansion as the contribution from the high-margin CASA segment increased to 54%. The Net Revenue Margin expanded by 925 basis points (bps) YoY and 275 bps QoQ, reaching 42.8%. EBITDA margin remained steady at 14.0%, compared to 13.6% in Q1'26 and 16.5% in Q4'26.

Total throughput decreased by 10% YoY but increased 3% QoQ in Q1 FY'27, reaching ₹ 1.11 lakh crore. UPI throughput grew by 14% YoY and 2% QoQ to ₹ 60.1k crore as digital customer engagement deepened.

Key Performance Indicators (KPIs)​

The following table summarizes the material financial and operational metrics for Q1 FY'27:

Business and Strategic Updates​

Customer Ownership and Liabilities:
The Bank expanded its liability franchise, with average total deposits increasing by 12% YoY to ₹ 2,772 crore. The CASA customer base improved to 1.83 crore, representing a 22% increase YoY, driven by the opening of 8.4 lakh new CASA accounts in Q1'27. Renewal income increased by 7% YoY to ₹ 67.5 crore, signaling sustained customer trust.

Business Segment Performance:
The CMS segment recovered sufficiently, with throughput improving sequentially by 26% to ₹ 18,092 crore, although competition from Banks and fintech continues to impact pricing structures. The UPI transaction business (covering Remittance, MATM, and AePS) saw a 50% decline in revenue and a 44% decrease in throughput year-on-year.

Lending and SFB Transition:
The loan referral segment, serving as a pilot for the proposed Small Finance Bank (SFB) structure, witnessed a surge in disbursals by 214% YoY to ₹ 628 crore, which accounted for nearly 50% of total FY'26 disbursals. Progress is being made in hiring senior credit professionals and onboarding essential technology providers for loan management system (LMS), credit underwriting, and lending operations. Fino remains on track to meet the necessary conditions within the stipulated timeframe for the SFB transition.

Management Commentary​

Ketan Merchant, Interim Chief Executive Officer, commented that Q1 FY'27 marks the start of Fino’s consolidation phase. The strategic focus is concentrated on the retail business, enhancing low-cost liabilities through aggressive customer acquisition and the referral lending model to build the Small Finance Bank capability. He highlighted that the commitment to a differentiated, AI driven technology-led liability first banking franchise remains central to creating long-term value for stakeholders.

Anup Agarwal, Interim Chief Financial Officer, noted that the quality and resilience of the franchise are improving, reflected in the 12% YoY growth in average total deposits reaching ₹ 2,772 crore. Despite the dips in revenue and profitability due to B2B UPI P2M services recalibration, the Bank posted the highest quarterly net revenue margin of 42.8%. The growing liability franchise provides a strong structural funding advantage, contributing 54% to total revenue while maintaining an asset-light and capital efficient model.

FINOPB Stock Price Movement​

Fino Payments Bank Limited shares edged higher to settle at ₹164.74 on Thursday, concluding the trading session with a 2.67% gain. The equity traded amid increased activity, posting a volume of 421,407 shares during the previous day's close.